Business Report on US Electric Truck Market 2020-2030

This penetration of electric vehicles in the U.S. is not just limited to passenger vehicles, but commercial heavy duty and light duty vehicles which run on electricity are also being increasingly adopted. Electric trucks have many advantages over traditional fuel-based trucks, such as low operational and maintenance costs, which is why the demand for these trucks in the U.S. is growing. According to a report by P&S Intelligence, in 2019, the U.S. electric truck market reached a value of $211.5 million and is predicted to generate a revenue of $30,335.3 million by 2030, advancing at a rapid pace of 58.2% CAGR during the forecast period (2020–2030).

Electric trucks are of three types, namely heavy-duty truck (HDT), light-duty truck (LDT), and medium-duty truck (MDT). Out of these, the LDTs are predicted to be the most in demand in the coming years. Companies in the domain are targeting fleet owners, who are focusing on reducing their operational expenditure, and are offering them electric variants of pickup trucks. These trucks have different ranges— 0–150 miles, 151–250 miles, 251–500 miles, and >500 miles. Electric trucks in the range of 151–250 miles were the most in demand in 2019, as the preference of class I and II trucks is high.

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In addition to this, trucks having higher range have not yet been able to address issues such as long charging time, high battery weight, and low battery energy density. In terms of propulsion, there are four types of electric trucks, namely fuel cell electric vehicle (FCEV), battery electric vehicle (BEV), plug-in hybrid electric vehicle (PHEV), and hybrid electric vehicle (HEV). BEVs were most in demand in the past, which can be ascribed to the rising government support in the form of incentives. Moreover, companies in the domain are collaborating with battery manufacturers to bring down the battery cost further and increase their energy density and life span.

Electric trucks have applications in logistics and municipal sectors. The logistics sector created the larger demand for electric trucks in the U.S. in 2019, owing to the swift growth of the e-commerce, retail, and manufacturing industries in the country. Furthermore, the logistics sector itself is registering significant growth in the U.S., which is contributing to the growth of the U.S. electric truck market. As the demand for faster and more convenient deliveries is growing, logistics companies are electrifying their fleet for optimizing operations.

Hence, the demand for electric trucks in the U.S. is rising due to the decreasing battery costs and expanding logistics sector.